At this most opportune time, there is a compelling argument to incorporate the right real estate investments in the typical physician’s investment portfolio.  The analysis should be done in cooperation with your financial advisor, if you choose to use one.  For instance, for those physicians nearing retirement age, a more stable income producing property acquired at the bottom of the real estate market NOW can serve a similar function as bonds might in a more traditional portfolio.  One such example is rental property built just 3 years ago that can produce a cash-on-cash return (unleveraged purchase) of 6-7% with the potential with appreciation, after the market corrects, to offer a total return of 14%.  The total returns increase if the buyer wants to leverage his or her position.

      With today’s CD and Money Market returns at an all time low, these annual cash-on-cash returns look quite attractive.   My job is to carefully guide the investor through the various steps of this process, understanding the realities of leverage, the benefits and risks of rental property, carefully showing you how to analyze and investigate potential pitfalls of a property, the judicious use of management companies for the out of town owner, and developing a disposition strategy that meets your needs. . .